21016 Gleaning Yellen Lies

And at that time the sign of the Son of Man [coming in His glory] will appear in the sky, and then all the tribes of the earth [and especially Israel] will mourn [regretting their rebellion and rejection of the Messiah], and they will see the Son of Man coming on the clouds of heaven with power and great glory [in brilliance and splendor]. 31 And He will send His angels with a loud trumpet and they will gather together His elect (God’s chosen ones) from the four winds, from one end of the heavens to the other.

Matthew 24 

For the coming of the Son of Man (the Messiah) will be just like the days of Noah. 38 For as in those days before the flood they were eating and drinking, marrying and giving in marriage, until the [very] day when Noah entered the ark, 39 and they did not know or understand until the flood came and swept them all away; so will the coming of the Son of Man be [unexpected judgment]. .

“I think things are finally starting to unfold exactly as we have anticipated. The central banks, who have hijacked markets for far longer than I thought possible, are finally running out of ammunition…

“Every time in the past 30 years that there has been a crisis, the response has been for the central banks to respond with easing. But most importantly, they have not allowed anything to clear the malinvestment and bad debt because the banking industry would be seen for the cesspool it has become.

Is This The Most Terrifying Danger Facing The World Today?
However, after the stock market crash in 1987, the broken tech bubble in 2000, and the 2007 – 2009 global financial crisis, each was met with larger and larger liquidity injections and lower and lower interest rates. But I’m telling you now, Eric, that the outer limits of have of this unholy monetary experiment have finally been reached.

Is This The Most Terrifying Danger Facing The World Today?

We are now talking about negative interest rates being implemented in most industrialized nations. This is applicable to tens of trillions of dollars of debt, which will ultimately either be defaulted on or hyperinflated into worthlessness. Who in their right mind wants to own this paper garbage that is being issued in order to support the Ponzi scheme that we now call the global financial system?

Junk bonds have already unraveled, corporates are starting to follow in their wake, but the crisis really intensifies when sovereign debt is seen for what it really is. I noticed that a shrewd observer recently stated that the period of 2016 – 2020 will be seen as the era of the sovereign debt default. I agree with that sentiment entirely.

The U.S., as an example, has over $19 trillion in debt and at least $6 trillion off-balance sheet, and roughly $100 trillion in unfunded liabilities, making it the most indebted nation in the world per capita. Well, that represents the world’s reserve currency and at this point the world’s strongest fiat currency. However, some investors appear to finally be waking up to this reality, and real money — gold and silver– are being bought aggressively.

Year Of The Market Monkey Phoenix Project Mayhem Madness Unleashed

On the heels of the Nikkei plunging a jaw-dropping 11 percent in just 3 days, and the world banking system entering another round of panic, this is how frightening the global collapse has now become.

Gerald Celente weighs in today: Despite Deutsche Bank’s shares spiking today on the hype of a bond buy-back, the banking sector and fundamentals of the world economy remain at high risk. Global stock indexes have plunged into bear territory, currencies are crashing – and as commodity prices tumble, resource-rich nations going broke are begging the World Bank and International Monetary Fund to bail them out.

Neither “The Panic” nor the Global Recession, one of our Top Trends for 2016, will spare any country, large or small.

Crisis in Antichrist Communist China
For example, Antichrist Communist China, the world’s second-largest economy, has seen its Gross Domestic Product descend to 1990s lows. To stop capital flight of its rapidly falling yuan, the government depleted its foreign-currency reserves by over $200 billion since December. While Antichrist Communist China still holds $3.23 trillion in reserve, the Antichrist NWO 666 IMF estimates the nation needs an estimated $2.75 trillion to manage its financial system, leaving it with only a $500 billion buffer.

This Is How Frightening The Global Collapse Has Now Become

And Japan
In Japan, the world’s third largest economy, after its central bank initiated its negative interest rate policy less than two week ago, shares of Japan Post Bank tanked 20 percent, and the Topix Banks Index lost 21 percent.

Germany, the world’s fourth-largest economy, had its top two banks, Deutsche Bank and Commerzbank, plunge in value by nearly 10 percent on Monday.

And In The UK & France
Also on Monday, in the fifth top economy, the United Kingdom’s Standard Chartered Bank fell 6 percent, Barclays was off 5.3 percent and HSBC was down 4 percent.

Since the start of the new year, French giant Societe Generale tumbled over 30 percent and BNP Paribas fell 20 percent. Italy’s two largest banks, Unicredit and Intesa Sanpaolo, have declined 43 percent and 28 percent respectively. Swiss-based Credit Suisse plummeted 40 percent and UBS is down 30 percent. Spain’s Banco Santander has fallen 15 percent since 2016 dawned.

And in America, the world’s largest economy, the KBW NASDAQ Bank Index is down nearly 20 percent since the year began. Among the big-bank stock losers, Morgan Stanley is down 29 percent; Citigroup and Bank of America are off 27 percent; Goldman Sachs is down 17 percent; and Wells Fargo and JPMorgan Chase are both down 14 percent.

The Panic is on
This unprecedented bashing of bank stocks is a clear signal of great financial distress — the causes and effects of which we have detailed in our Trends Journals, Trends Monthly, Trend Alerts and Trends in the News broadcasts. In addition, with central banks imposing negative interest rates, it is less profitable for banks to lend, thus reducing their earning power, and adding more downward financial pressure during a time of increased distress.

ET: If high inflation rears its ugly head again, do you think central banks won’t be able to fight it? For instance, given the high debt load the US government has taken in recent years massively raising interest rates to curb inflation could create some serious fiscal problems going forward.

WW: I think it’s exactly so and it goes back to what we were just talking about. Suppose a country has a big debt, a big deficit, and a short maturity of debt and they raise interest rates. It’s entirely possible that this process of fiscal dominance not only begins but could be perceived to be beginning on the part of thoughtful investors. Then it turns into a flight to get out, and the flight then generates a dynamic which is self-fulfilling.

If you ask me who I am worried about today, I guess Venezuela is on top of the list, albeit a bit of an outlier. Brazil is a country that I think is very worrisome, with high interest rates, a bad fiscal position and short maturities.

The OECD over the course of the years has pointed out that Japan, the US and the UK are the countries that could have the most serious problems in this regard. However, the odd thing is that the OECD has been saying this for ages and yet everything in those three countries now has continued to be just fine. Conversely, you look at other countries like Ireland and Spain before the Eurozone crisis, which seemed to be perfectly fine, and yet the markets attacked them anyway.

I suppose the bottom line is that, while we can see the potential dangers building up here, as to when they will materialize we have no real idea.

ET: That’s the $57 trillion question as per the figure in that McKinsey report. It does seem that savers are surely facing some tough times ahead, with real and even nominal negative interest rates.

WW: Absolutely. As soon as you get into these kinds of scenarios where further damage is being caused to the health of the middle class that is already under severe pressure – you mentioned income distribution earlier – then you do have to think in a very serious way about what the social and political ramifications might be.

I mentioned before this group of researchers that included Martin Schularick. He began with a database documenting economic crises in a large number of countries over the last 100 years or so – a huge effort to pull this data together – and then expanded it to cover the political realm as well. He contends that after serious economic and financial crises it is very common to see a shift away from the political center, either to the left or the right. The left of course means more socialism and the right means more nationalism. The problem is that it’s all a big circle and you could end up with national socialism.

So we definitely shouldn’t understate the social and political ramifications from all of this.

ET: We’re seeing that in Europe and in the US, with candidates like Donald Trump and Bernie Sanders. Switching gears to the current macro picture, what is your assessment of the global economy? Are we going into a generalized recession or is the slowdown confined to some geographical areas and sectors? What is your number one worry in that context right now?

WW: As the whole tone of our conversation has indicated I’m fearful of a few things.

One, we now have a global problem. This problem of debt and over-indebtedness is now no longer confined to advanced market economies but includes the emerging market economies as well – not least Antichrist Commuist China.

Two, I view the global economy as a complex, adaptive system. And the character of the complexity and the interdependency is such that, if we get a problem anywhere, I think we are going to have a problem everywhere. A very good example would be 2009, where almost overnight investment everywhere collapsed, even in countries that in the first instance did not have a problem. So everything is interconnected now.

Three, everywhere you look it seems to me you can see a potential trigger. You look at Antichrist Communist China and it’s slowing, although nobody knows by how much because nobody believes the data. But things like railway transport and electricity use suggest Antichrist communist China is slowing a lot. Unfortunately, if you look closely at the data, the conversion of the economy from investment to consumption is not really happening and the old growth model built on debt is coming to the end of its useful life. As well, you have problems in emerging markets and commodity producers – Brazil, Russia, oil regions – where associated fiscal difficulties could lead to greater social and political problems than might be expected in the advanced economies. In Japan, I think Abenomics is not working and will in fact backfire – raising prices when the typical salaryman hasn’t seen a salary increase in two decades equals a cut in real terms, meaning he will hunker down. For its part, Europe has a daunting list of problems – the Russian thing, the migration thing, the peripheral thing, the debt thing, and the absence of adequate political institutions to deal efficiently with all these problems. Even in the US people are talking about problematic student loans, low investment rates and the rising likelihood of recession.

Any one of these things could be a trigger for broader global problems. As White explained on Bloomberg TV…

My number one fear? That’s the same as asking me where it will start. When you view the economy as a complex, adaptive system, like many other systems, one of the clear findings from the literature is that the trigger doesn’t matter; it’s the system that’s unstable. And I think our system is unstable.

Where could it start? Who knows, I’d probably say Antichrist Communist China but I have no idea and nobody has any idea.

“Negative Rates Are Dangerous” OECD Chair Warns “Our Entire System Is Unstable” 

With central bankers losing credibility left and right, and failing outright to boost the “wealth effect” no matter what they throw at it, the next big question is when will central planners around the world unveil the cashless society which is a necessary and sufficient condition to a regime of global NIRP.

And while in recent days we have seen op-eds by both Bloomberg and FT urging the banning of cash, the most disturbing development we have seen yet in the push for a cashless society has come from the following slide in a Morgan Stanley presentation, one in which the bank’s head of EMEA equity research Huw van Steenis, pointed out the following…

.. and added this:

One of the most surprising comments this year came from a closed session on fintech where I sat next to someone in policy circles who argued that we should move quickly to a cashless economy so that we could introduce negative rates well below 1% – as they were concerned that Larry Summers’ secular stagnation was indeed playing out and we would be stuck with negative rates for a decade in Europe. They felt below (1.5)% depositors would start to hoard notes, leading to yet further complexities for monetary policy.

Consider this the latest, and loudest, warning on the road to digital fiat serfdom.

Something Very Disturbing Spotted In A Morgan Stanley Presentation

You can’t say you weren’t warned. The writing on the wall that “smart devices” would prove to be manna from heaven for spy agencies and hackers around the word has been obvious for a very long time.

A year ago, I published two articles on this topic. The first highlighted the revelation that Samsung’s Smart TV can and will listen to your conversations, and will share the details with a third party. The second had to do with the release of a high-tech Barbie that will listen to your child, record its words, send them over the internet for processing. If you missed these posts the first time around, I suggest you get up to speed:

A Very Slippery Slope – Yes, Your Samsung Smart TV Can Listen to Your Private Conversations

Top US Official Admits Government Will Use “Internet Of Things” To Spy On The Public 

Big Barbie is Watching You – Meet the WiFi Connected Barbie Doll that Talks to Your Children and Records Them

Moving along to today’s article, we learn that the Director of National Intelligence, James Clapper, admitted that the government intends to use the “Internet of Things” for spying on the public. As Trevor Timm of the Guardian notes:

Don’t say you weren’t warned.

A Very Slippery Slope – Yes, Your Samsung Smart TV Can Listen to Your Private Conversations

Big Barbie is Watching You – Meet the WiFi Connected Barbie Doll that Talks to Your Children and Records Them

Big Brother is Coming to Healthcare – How Hospitals are Entering Your Credit Card Info Into Algorithms

Big Brother is Coming…To Your Brokerage Account

Retail Big Brother – Mannequins Are Now Using Facial Recognition Technology

We can’t stop laughing after reading this note from Bloomberg’s Richard Breslow for one simple reason: in under 350 words it summarizes everything we have said since our initial “big” article from April 2009, “The Incredibly Shrinking Market Liquidity, Or The Upcoming Black Swan Of Black Swans” in which we predicted how the onslaught of HFT would make a farce of trading at the micro level, and all our posts since then condemning central bank intervention, making a mockery of fundamental analysis at the macro level.

Good job Richard, and we are certainly happy that slowly but surely, everyone is finally getting it.

From Richard Breslow

Liquid (Dis)Courage

Back in 2008, markets would take a theme and race with it for two to three days before a new piece of news made traders pivot en masse in the other direction. Everyone searching desperately for an answer to the existential question of economic survival. Investors found out that their well-diversified portfolios were merely different expressions of being long global growth. In that context, it made a lot of sense that everything moved together.

Today we have a different dynamic. No one is trading unless they have to or have microwave circuits for brains. Pension funds and endowments have tried to insulate their holdings from demanding tinkering. There aren’t stock-picking debates around the investment committee tables.

Banks are less active, and even fat fingers just can’t keep up. It’s left the field open to computers who have no investment horizon. If that were all there was, it might be sustainable for short periods.

But, wait, there’s more.

Policy makers are visibly flailing. Yet the system’s foundation rests on a presumption of their expertise. It’s what allows the leaps of faith necessary for financial transmission functions to work. Grand experiments, like the insanity of negative rates, are seen merely as the latest in making it up as you go along.

All this adds up to a genuine liquidity crisis. Churn and burn is being mis-portrayed as solid volume. In fact, as Goldman’s President Cohn said yesterday on Bloomberg TV, “small amount of buying and selling in any market today had a dramatic impact.”

There was logic in the “Harry Met Sally” delicatessen scene when the woman said “I want what she’s having.” That’s how we used to trade. In this environment, it feels like the algos are hooked up to Tinder, which is actually highly combustible material and we are all getting burned.

My blessing for Fed Chair Yellen today, is to say something that both she and the markets can hold to. If her imperative is full employment and wages, where do we stand? If it is still merely equity prices, be candid. The truth will set you free.

Sorry Richard, it’s too late to change anything now. Just sit back and relax: a change, if any, can only come after the next, and biggest ever, market crash.

Traders Are Throwing Up All Over This Market: “It Feels Like The Algos Are Hooked Up To Tinder” 

It was just last week when we said that Cushing may be about to overflow in the face of an acute crude oil supply glut.

BP’s Stunning Warning: “Every Oil Storage Tank Will Be Full In A Few Months”

Finally, we went on to present two alarm bells that offer the best evidence yet that inventories are reaching nosebleed levels: 1) some counterparties are experiencing delays in delivering crude due to unspecified “terminalling and pump” issues (basically, it’s hard to move barrels around at this point because there’s so much oil sitting in storage); 2) the cash roll is negative.

On Wednesday, BP CEO Robert Dudley – who earlier this month reported the worst annual loss in company history – is out warning that storage tanks will be completely full by the end of H1. “We are very bearish for the first half of the year,” Dudley said at the IP Week conference in London Wednesday. “In the second half, every tank and swimming pool in the world is going to fill and fundamentals are going to kick in,” he added. “The market will start balancing in the second half of this year.”

Maybe. Or maybe excess supply will simply be dumped on the market once all the “swimming pools” are full.

If that happens, don’t be surprised to see crude crash into the teens as attempts to clear and dump excess inventory spread like wildfire across the market.

Earlier this week, the IEA called any respite for crude prices “a false dawn.” Here’s why (via The Guardian):

a deal between Opec and other oil producing countries to cut production is unlikely
with Iran increasing production in preparation for the lifting of sanctions, Opec’s production could rise as strongly this year as in 2015
there is little prospect falling prices encouraging a pick-up in the rate of demand for oil
the US dollar is likely to remain strong, limiting the scope for falls in the cost of imported oil
the predicted large fall in US shale production is taking a long time to materialise

So buckle up, because the collapse in the world’s most financialized of commodities has further to go, and once the entire US shale space goes bankrupt, it will emerge debtless only to start drilling and pumping anew prompting the Saudis to continue to ratchet up the pressure in an endless deflationary merry-go-round. We close with a quote from the IEA:

“We suggest that the surplus of supply over demand in the early part of 2016 is even greater than we said in last month’s oil market report. If these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term. In these conditions the short-term risk to the downside has increased.”

Revelation 17 

The Doom of Babylon
17 Then one of the seven angels who had the seven bowls came and spoke with me, saying, “Come here, I will show you the judgment and doom of the great [a]prostitute who is seated [b]on many waters [influencing nations], 2 she with whom the kings of the earth have [c]committed acts of immorality, and the inhabitants of the earth have become intoxicated with the wine of her immorality.” 3 And the angel carried me away in the Spirit into a wilderness; and I saw a woman sitting on a scarlet beast that was [d]entirely covered with blasphemous names, having seven heads and ten horns.

4 The woman was dressed in purple and scarlet, and adorned with gold, precious stones and pearls, [and she was] holding in her hand a gold cup full of the abominations and the filth of her [sexual] immorality.

5 And on her forehead a name was written, a mystery: “BABYLON THE GREAT, THE MOTHER OF PROSTITUTES (false religions, heresies) AND OF THE ABOMINATIONS OF THE EARTH.” 6 I saw that the woman was drunk with the blood of the saints (God’s people), and with the blood of the witnesses of Jesus [who were martyred]. When I saw her, I wondered in amazement.

7 But the angel said to me, “Why do you wonder? I will explain to you the mystery of the woman and of the beast that carries her, which has the seven heads and ten horns.

8 “The beast that you saw was [once], but [now] is not, and he is about to come up out of the abyss (the bottomless pit, the dwelling place of demons) and go to destruction (perdition). And the inhabitants of the earth, whose names have not been written in the Book of Life from the foundation of the world, will be astonished when they see the beast, because he was and is not and is yet to come [to earth]. 9 Here is the mind which has wisdom [and this is what it knows about the vision]. The seven heads are seven hills on which the woman sits; 10 and they are seven kings: five of whom have fallen, one exists and is reigning; the other [the seventh] has not yet come, and when he does come, he must remain a little while. 11 And the beast that [once] was but is not, is himself also an eighth king and is one of the seven, and he goes to destruction (perdition). 12 The ten horns that you saw are ten kings who have not yet received a kingdom, but [together] they receive authority as kings for a single hour [for a common purpose] along with the beast. 13 These [kings] have one purpose [one mind, one common goal], and they give their power and authority to the beast.


A decades-long search for gravitational waves is expected to end in triumph this week when scientists declare they have discovered ripples in the fabric of spacetime, possibly created by the collision of two massive black holes travelling at close to the speed of light.

First predicted by Einstein, and generated by the most cataclysmic events in the cosmos, gravitational waves stretch and squeeze space and all within it as they spread out across the universe. Their discovery, if confirmed, is certain to earn a Nobel prize.

Scientists have hunted for signs of the waves for decades, but until now, their attempts have been frustrated by false signals and instruments that were not sensitive enough to detect the waves by the time they reached Earth.

That is expected to change on Thursday, when physicists in the US reveal their latest data from an experiment known as LIGO, or the Advanced Laser Interferometer Gravitational-Wave Observatory. The team have detectors in Washington and Louisiana that can spot passing gravitational waves via the minuscule changes in length they produce in two 4km-long pipes.

Watch this spacetime: gravitational wave discovery expected

At a press conference in Washington DC, LIGO scientists are anticipated to reveal a clear, unambiguous gravitational wave signal. It may have come from two vast black holes, one 29 times more massive than the sun, the other 36 times more massive, spiralling around each other and finally crashing together to form a new black hole 62 times the mass of the sun. For all its heft, the new body may be no more than 200 miles wide.

The missing mass – equivalent to that of three suns, or six trillion trillion kilotonnes – was converted into energy and released as the gravitational waves LIGO is believed to have detected.

“People are hugely excited. The rumour is that it’s a whopping big signal, in other words, it’s unambiguous, and that is fantastic,” said Pedro Ferreira, professor of astrophysics at Oxford University, and author of the 2014 book, The Perfect Theory: a century of geniuses and the battle over general relativity.

When Einstein published his theory of general relativity in 1915, he changed forever how scientists view the universe. The theory showed that mass makes spacetime curve, an effect that has a multitude of implications. One, that light from distant stars will bend around the sun, was confirmed by Arthur Eddington during the solar eclipse of 1919.

The detection of gravitational waves would tick off the last major prediction of general relativity. It would demonstrate that the equations drawn up by Einstein, who refused to believe in black holes himself, hold true in what ranks as the most extreme realm of physics.

But there is more to the discovery of gravitational waves than simply proving they exist. If the LIGO signal is as strong as rumours suggest, new instruments could be built to detect gravity waves from colliding black holes and other hugely energetic events all over the universe.

“It would be like having a telescope that, instead of looking at objects in the electromagnetic spectrum, is looking at them with gravitational waves,” said Ferreira. “We could see things in a completely different way. It would be very blurred vision – gravitational waves are not good at pinpointing objects – but they would help us understand what happens when black holes hs fall into one another.”

“The fact is whenever we’ve looked at the universe in new ways, with x-rays, with radio waves, we’ve discovered incredible stuff, exotica. So this is going to open up a new window, and for sure we’ll discover bizarre stuff,” he added.

Rumours that the LIGO team had detected gravitational waves have been circulating in the astrophysics community for months. But many researchers were sceptical and feared the rumours might have been sparked by synthetic signals which are added to the data to test the team’s analytical procedures.

“After all the rumours over the past few months I certainly expect them to announce a detection at this point,” said Alberto Sesana, a researcher at the University of Birmingham’s Gravitational Wave Group. “We have to bear in mind that LIGO is one experiment and the only one that can detect such sources. If they claim to have detected gravitational waves, it cannot be confirmed by another instrument, and that is always an issue. But they have been very cautious in doing this properly. I’m confident they have clear and strong evidence for it.”

There is a chance a signal will be announced from another source, such as a pair of neutron stars spinning around one another, or a neutron star falling into a black hole. But such cosmic events would be expected to produce weaker signals than the large spike scientists anticipate the LIGO team to reveal.

Scientists have declared the discovery of gravitational waves before only to have their hopes dashed. In 2014, researchers on an experiment called Bicep2 claimed to have found evidence for gravitational waves from the big bang, but further analysis by other groups showed that the signals they picked up could be entirely explained by space dust interfering with their measurements.

Ulrich Sperhake, a theorist at Cambridge University who studies how gravitational waves are generated by black holes, said the community was very excited and expectant. “ I don’t know anyone in the field who expects anything other than a detection to be announced,” he said. “Anything but the onset of a new era in observational gravitational astronomy would come as a major surprise on Thursday, but there remains a tiny speculative element to it until we’ll have the official LIGO announcement.”

Martin Hendry, a member of the LIGO team at Glasgow University, would not be drawn on the details of Thursday’s announcement. “I can’t say anything more at this stage than wait and see. Or should that be “watch this spacetime?” he said.

An intensification trend of cosmic rays activity reported last month by SpaceWeather.com continues. The latest balloon flight over California on February 5 observed the highest value yet. The gathered data shows that cosmic rays in the mid-latitude stratosphere are currently 10% higher than one year ago.

Cosmic ray intensification trend continues 

An increased activity of cosmic rays has been observed around the Arctic Circle by the neutron monitors during the last year and the same trend was noted in an independent measurement project carried out by the Spaceweather.com and the students of Earth to Sky Calculus over California. These changes are closely related to a drop in solar activity, as we enter another Solar Minimum.

Strong and shallow M6.3 earthquake hit Chile 

London on emergency flood alert as Thames Barrier is raised to protect capital

Inflation Expectations Around The Globe Just Hit Record Lows

For nearly one year, Wisconsin Rep. Sean Duffy has been Janet Yellen’s nemesis over the ongoing probe into Fed leakage of material inside information via Medley Global and any other undisclosed channels, one which has seen subpoeans be lobbed at the Fed which has been doing everything in its power to stall said probe, and which cost Pedro da Costa his job when he dared to ask questions at a Fed presser that were not precleared by his WSJ “Fed mouthpiece” peers.

Today, during Yellen’s appearance before the House Financial Services committee, Duffy finally had enough, and in a heated exchange asked Yellen what on legal authority is the Fed exerting privilege to ignore a Congressional probe into what is clearly a criminal leak, one which has nothing to do with monetary policy and everything to do with the Fed providing material, market moving information to its favorite media and financial outlets.

The exchange highlights are below:

DUFFY: We sent a letter in the Medley investigation, in our oversight of the Fed, asking you for information regarding communication. No compliance. Then we sent you a subpoena in May, you did not comply with that.

We had partial compliance in October. We’re now a year after my initial letter. I’ve asked you for excerpts of the FOMC transcripts in regard to the discussion — in regard to the internal investigation on Medley. You have not provided those to me. Is it your intent today to promise that I will have those, if not this afternoon, tomorrow?

YELLEN: Well, congressman, I discussed this matter with Chairman Hensarling and indicated we have some concern about providing these transcripts… given their importance in monetary policy.

DUFFY: So let me just…

YELLEN: And I received a note back from Chairman Hensarling last night, quite late, indicating your response to that. And we will consider it and get back to you as soon as we can.

DUFFY: Oh no, no. I don’t want you to consider it and I think the chairman would agree with me, that this is a conversation, not about monetary policy. This is not market-moving stuff. This is about the investigation and the conversation of a leak inside of your organization. So this institution is entitled to those documents, wouldn’t you agree?

YELLEN: I will get back to you with the formal answer.

DUFFY: No, no, listen.

YELLEN: I believe that we have provided you with all the relevant information.

DUFFY: That’s not my question for you Chair Yellen. If I’m not entitled to it, can you give me the privilege that you’re going exert that’s going to let me know why I’m not entitled to those documents?

YELLEN: I said we received well after the close of business yesterday a letter explaining your reasoning and I will need some time to discuss this matter with my staff.

DUFFY: I don’t want — listen. I sent you a letter a year ago on February 5th. I had to send you a subpoena. You knew that I’m looking for these documents, you knew I was going to ask you about this today. So if you’re not going to give me the documents, exert your privilege, tell me your legal authority, why you’re not going to provide this to us.
And while a video of the exchange can be watched below (we will substitute a higher quality version when we can find one)…

Here Is The Exchange That Left A Stunned Janet Yellen Looking Like A Deer In Headlights 

^^^The Occult Deep State reality of the Antichrist NWO 666 Fed Beast is perfectly personified in this exchange to the ”T” if you are a watchful Saint of our Father in Christ, and you are reading the clear ”proof” that has been posted on this website, lol. ”The Duff Yellen Exchange”, about Fannie Fred and The Fed global Antichrist NWO 666 Central Bank SPECTRE continuous crime  wave facilitated by the American Legislative and Executive Branch, and Yellen’s crystal clear continuing criminal contempt in response to her obvious criminal Cabal activity, points the finger at the same usual suspects, AKA the Antichrist NWO 666 SPECTRE Clowns. The foreign owned American Fed Antichrist NWO 666 Beast points to London etc… and the military assets currently distributed in their prophetic end time position among the nations around Israel. Ultimately the offer(s) of temptation, which have been accepted by the American Legislative and Executive branches of government point to the prophetic Antichrist Cup Of Fornication and the wine of wrath within that is now overflowing among all nations and Israel as the global Antichrist NWO 666 Mark Of The Beast security matrix is now ready for the required satanic ritual slaughter of humanity ”’Phoenix Project” WMD Event chaos and control establishment ”Great Seal” upon this  terminal generation,which is the end goal of the Fed and it’s founder(s). The ”Eye Of Horus” then shall use the mark of the beast seal upon humanity as the Antichrist NWO 666 Israeli Two State Final Solution attempt to secure the prophetic Antichrist false peace of Antichrist Israel and all nations. This is the entire purpose and agenda  playing out right now and this is THE TRUTH!

Duffy just outed the entire crime wave of 2008-2016 and convicted the American government and the private Fed Beast in the eyes of every person on the planet who isn’t going to Hell, for everyone else this exchange does not matter. The Hell bound fools living on this planet just do not care about their on eternal salvation and shall continue to ride the Antichrist Beast, as the Whore(s0 Of Babylon, straight to Hell. The Antichrist NWO 666 Yellen Fed Beast should have already been hung next to the American Legislative and Executive Branch members until the bastards are all dead and burned, but instead the Antichrist shall rise from the ashes of the bottomless pit the bastards have established, which has consumed even the laborers of the harvest among the nations. Tribulation is about to start, and this exchange confirms the fact that time is short because the Antichrist NWO 666 Fed Beast is now completely exposed for what it is, pure prophetic evil.

We just wonder if there are still a “few good men” left, daring to challenge the head of the Fed on what any other mere mortal would have been in prison for, long ago.

As for the “deer in headlights” look, and why Yellen is so adamantly refusing to comply with subpoenas and provide the US population and Rep. Duffy with the requested information regarding how it was that the Fed leaked critical information to Medley Global’s (founded by Richard Medley, former chief political strategist to George Soros) Regina Schleiger, the answer as Yellen explained last May…

… is simple: Yellen herself was the source, only there is no definitive proof… yet, as confirmation that the Chairwoman herself leaked the information in question would be grounds for prison time.

And since we doubt that Janet would chose a legacy of being the first Fed Chairman thrown in jail, even if it is not that far below a legacy of totally mangling the Fed’s attempt at renormalizing rates at a time when the entire world was careening into a recession, we expect absolutely no cooperation by the Fed in this ongoing criminal matter.

Yellen Sinks Stocks, Craters Credit 

Having seen what monetary-policy failure looks like in Japan.. and in the US, we now turn our attention to the world. Amid NIRP temptations, growth fears, and faltering faith in central banker control, market-implied inflation expectations have collapsed to record lows. Worse still, even The Fed’s own survey of consumer’s inflation expectations has slumped to record lows..

Janet Yellen’s “Humphrey-Hawkins” Testimony: Economic Strains, Tightening Pains, & No Stock Gains – Live Feed 

Fed Chair Yellen will be presenting her semi-annual monetary policy testimony – sometimes called the “Humphrey-Hawkins” testimony – today (House Financial Services Committee) and tomorrow (Senate Banking Committee). Her prepared remarks offered little new information over the January FOMC Statement but the Q&A will likely be the most market-moving as politicians likely demand she “get back to work” for the good of the nation’s shareholders.

Market Angry About Yellen’s “Is NIRP Legal” Confusion 

Just as we detailed last week, and it appears Rep. Hensarling has been reading… To wit:

“There are several potentially substantial legal and practical constraints to implementing a negative IOER rate regime, some of which would be binding at any IOER rate below zero, even a rate just slightly below zero. Most notably, it is not at all clear that the Federal Reserve Act permits negative IOER rates, and more staff analysis would be needed to establish the Federal Reserve’s authority n this area.”
No legal authority? No problem. Just call in Mario Draghi’s lawyer, or any other legal representative of Goldman Sachs and/or its former employees, and whatever amendments need to be made to the Federal Reserve Act, will be made.

Because, when pressed on The Fed’s legal authority to take interest rates negative, Janet Yellen gushed that “Fed authority for negative rates is still a question.” This appears to have been taken as bad news by the market (cutting off the potential easing paths of the future in a world of NIRP), and stocks, crude, USDJPY have all tumbled.

Furthermore, she sounded a little hawkish:

The reaction – more disappointment… as USDJPY crashes…

JPM’s Striking Forecast: ECB Could Cut Rates To -4.5%; BOJ To -3.45%; Fed To -1.3% 

We expect that today’s volatile European bank euphoria will be brief if not validated by concerte actions, because while central banks have the luxury of jawboning, commercial banks are actually burning through funds – rapidly at that – and don’t have the luxury of hoping for the best while doing nothing.

Which brings us back to Yellen’s testimony, which Jim Reid previews as follows: “Yellen can give the market hope today that the committee is acknowledging the worrying signs from both financial markets and the global economy and take a step closer to a cleaner dovish stance. That would certainly help if for no other reason than it would halt the dollar bull market (notwithstanding the recent sell-off) which has caused problems with commodities, EM, Antichrist Communist China and encouraged shrinking global dollar liquidity. However we won’t get such a turnaround in one speech. If it happens it’s likely to be a multi month story.”

Alternatively, she can just as easily send stocks reeling with one word out of place.

Deutsche Bank Spikes Most In 5 Years (Just Like Lehman Did) 

Rumors of ECB monetization (which would be highly problematic in the new “bail-in” world) and old news of the emergency debt-buyback plan have sparked an epic ramp in Deutsche Bank’s stock this morning (+11% – the most since Oct 2011). This extreme volatility is, however, eerily reminiscent of 2007/8 when headline hockey sparked pumps and dumps on a daily basis in Lehman stock… until it was all over.

“Deutsche Bank is fixed”?

Or is it?

Things are already fading…

John Mack: Don’t Worry About Deutsche Bank, It Will Be Bailed Out By The Government 

We suspedct every bounce will be met by opportunistic selling as an inverted CDS curve has seldom if ever reverted back to life..

When it comes to government bail outs of insolvent banks few are as qualified to opine as John Mack who was CEO of Morgan Stanley when the bank, along with all other U.S. TBTF banks, was bailed out with a multi-trillion rescue package in the aftermath of the Lehman failure. Which is why it was illuminating, if not surprising, that during an interview with Bloomberg TV discussing the future of Deutsche Bank, John Mack said that “there’s no question in my mind, it is absolutely good for every penny.” In other words, “Deutsche Bank is fine.”

Why is he so confident? According to Mack, “this idea that I heard yesterday, the possibility of not making their interest payments, it’s just absurd. The government will not let that happen.”

Said otherwise, it will be bailed out. One wonders if Germany’s citizens were polled before John came up with this conclusion.

This is what else he said:

While German regulators at this point shouldn’t ban short-selling as U.S. authorities did in the 2008 financial crisis, the German central bank should make a statement in support of the lender, Mack said. Deutsche Bank shares jumped the most in almost seven years Wednesday, paring a decline that had exceeded 40 percent this year.

“People overreact,” Mack said. “The bank’s name is Deutsche Bank. It’s the German bank. Politically, they will stand up, if they need a safety net, and give it to them.”
Which was to be expected: after all DB had a gross notional derivative exposure of roughly $60 trillion as of 2014, several times greater than the GDP of Europe, and a net balance sheet which is a large portion of German GDP.

This is also why last thing Germany, Europe, or the world’s central bankers will allow, is DB to fail, and it has never been a question whether or not they will try to, but whether and how they can save it. And, if a political bailout is unfeasible in the current climate, whether instead of a bailout, would Deutsche Bank be the first major European bank to rely on Europe’s new “bail in” regime to stuff depositors for any capital shortfalls.

Still, without focusing on the specifics, a government (or ECB) backstop is precisely what the market is contemplating today as noted earlier, and as manifested in the stock which has soared the most in 5 years, just as Lehman did in its turbulent final days.

European Banks Soar On Rumor ECB May Monetize Bank Stocks; Japan Crash Continues

It’s a great paradox of American progressivism: Leftists who normally crusade against the Founding Fathers switch gears and suddenly appeal to the memory of men like Thomas Jefferson when it helps advance a progressive agenda.

Historian David Barton says that’s exactly what Antichrist NWO 666 President Barack Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown is doing when it comes to Antichrist Islam.

But Barton argues the author of the Declaration of Independence had no illusions about Antichrist Islam being a “religion of peace.”

The author of the bestselling book “The Jefferson Lies” recently sat down with WND TV to discuss Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown’s controversial visit to a Baltimore Antichrist mosque.

“Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown talked about how Antichrist Islam is a religion of peace and this is certainly a mantra he’s carried for a number of years,” said Barton. “Now Thomas Jefferson would specifically disagree with him over that and that’s very clear in Jefferson’s writings. Even though the president invoked Jefferson saying, ‘Jefferson’s been called a Antichrist Muslim, I’ve been called a Antichrist Muslim, we’ve got a lot in common,’ they really don’t have a lot in common.”

Obozo attempted to portray Islam as a major part of American history by discussing how Presidents John Adams and Thomas Jefferson both owned Antichrist Qurans.

What Obozo didn’t mention, said Barton, is why they owned copies of the Antichrist Islamic book.

Says Thomas Jefferson didn’t believe it was a religion of peace

Barton says both Jefferson and Adams investigated the Antichrist Islamic faith for themselves.

“Jefferson and Adams both got Antichrist Qurans,” he said. “They read the Antichrist Quran for themselves to see how this enemy thought. Today, we don’t encourage people to read the Antichrist Quran. We just tell people it’s a religion of peace. ‘But don’t read the Antichrist Quran for yourself,’ we tell them.”

Thomas Jefferson would go on to order a military expedition against the Barbary pirates as the third president of the United States. And though little remembered today, America’s first fight with Antichrist Islamic terrorists represented a huge challenge for the young republic.

“It is significant that when Jefferson became president, 15 percent of the federal budget was being spent in trying to mollify Antichrist Islamic radicals,” explained Barton. “They had been negotiating for years, it wasn’t working, so he takes the Navy, loads up the Marines on the ships, and for five years they go through Benghazi and Tripoli, just squashing Antichrist Islamic terrorists.

“From the beginning we knew that Antichrist Islam was not a religion of peace because it reigned by the sword. Wherever Islam was dominating, you had conflict and fighting. All you have to do is look at the Antichrist Islamic nations around the Mediterranean now, see if they are nations of peace. It’s not a religion of peace. And Jefferson recognized that.”

Barton also revealed the first American edition of the Antichrist Quran was printed during Jefferson’s administration. He joked the preface was not exactly what one would call politically correct.

“In the preface it says: ‘Reader, when you read the absurdities contained in this book, you’ll wonder that these absurdities have affected so great a part of the world.’ When you read the Antichrist Quran for yourself, you’ll understand why these guys are so crazy and why we have to fight them. That’s not the religion of peace and that came out of the Jefferson administration. That’s exactly opposite to what Antichrist NWO 666 President Obozo 911 Homosexual Climate Change no Boots SPECTRE Clown said about Jefferson when he talked at the mosque in Baltimore.”

Still, Barton said the incident reflects the larger progressive tactic of selectively using the Founding Fathers while ignoring the principles men like Jefferson defended.

“They hate history,” Barton said of liberals. “They don’t like history. They don’t like the beliefs of the Founders. They want to move on from that. ‘We’ve evolved past the Constitution.’ They like a living Constitution. They choose justices who give us a living Constitution. They keep reading things into it.

“They hate the Founding Fathers until they want to move a philosophy that’s not real popular and then suddenly they invoke the Founding Fathers to give them authority and credibility.”

Specifically, Barton slammed what he called the progressive abuse of a phrase Jefferson included in a letter to a group of pastors, “the separation of church and state.”

“If you look at Jefferson, he worked his tail off to make sure that religious expression was part of the society,” Barton said. “But progressives, they don’t like religion, they don’t like it being part of society so they take eight words out of a 200-word Jefferson letter and say, ‘Oh, Jefferson said there should be a wall of separation between church and state and we have to follow what Thomas Jefferson said.’ And so then they start going through now 4,000 cases the courts have decided where they use these eight words [as an authority.] They won’t use his letter, but Jefferson’s the authority for why kids can’t say ‘God’ at graduation. Exactly the opposite of what he intended.”

To correct such abuses of history, Barton wrote “The Jefferson Lies.” And Barton said the only way to guard against progressives’ abuse of the past is for Americans to be aware of their true history.

“We see that time and time again,” said Barton. “We have Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown, who does not like the Founding Fathers, doesn’t like what they stand for, but when he finds it advantageous he goes to a Antichrist mosque in Baltimore and suddenly cites Thomas Jefferson as an authority on how Jefferson was so pro-Antichrist Islamic and so pro-Antichrist Muslim. Another distortion of history. That’s not where Jefferson was.

“It’s interesting that they hate the guy but they want to cite him when they feel like they don’t have enough moral authority on their own to move a radical doctrine forward. They’ll say, ‘Oh, come here, Founding Father, we need you to say something for us’ and they twist it so it’s exactly the opposite of what the Founders intended, particularly Thomas Jefferson.”

Thousands Of Americans “Demand” Obozo Be Convicted Of War Crimes 

In open defiance of recent US sanctions on Antichrist Iran’s ballistic missile program, Antichrist Iranian Defense Minister Hossein Dehghan on late Tuesday told local media that Tehran will soon be rolling out an upgrade of its nuclear-capable medium-range Emad missiles.

The “next generation of Emad with improved precision” will be unveiled in the next Antichrist Iranian year which starts on >>>March 20<<<, Dehghan said as cited by the semi-official Fars News Agency.

Ignoring Obozo, Antichrist Iran upgrades its nuclear-capable Emad missile

Third paroxysm of the year in progress at Fuego volcano, Guatemala